Establishment of Joint Venture with Indian Tractor Manufacturer
— Strategy to accelerate entry into the Indian agricultural machinery market, one of the world’s biggest, through local production
December 11, 2018
Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Masatoshi Kimata; hereinafter referred to as “Kubota”) has reached an agreement with the Indian tractor manufacturer Escorts Limited (Headquarters: India, Chairman and Managing Director: Nikhil Nanda; hereinafter referred to as “EL”) on joint establishment of a tractor manufacturing company. The particulars are presented below.
1. Background and aims of joint venture establishment
- The Indian market for tractors is one of the largest in the world in terms of the number of tractors, and is projected to continue expanding into the future. At present, the market is supplied mainly by local (Indian) manufacturers, which are reinforcing their tie-ups with foreign-affiliated manufacturers.
- Kubota established Kubota Agricultural Machinery India Pvt. Ltd. (KAI) and entered the Indian market in 2008. This business has been proceeding smoothly since the sales launch in 2015 of a multipurpose tractor adapted to towing and other uses.
- EL has manufacturing know-how and excellent capabilities for components procurement. Through this collaboration, Kubota is determined to accelerate the growth of its tractor business through local production of multipurpose tractors.
2. Outline of the joint venture
- 1 rupee = 1.7 yen (the exchange rate as of November 2018)
4. Future outlook
- Plans envision that the plant will begin operations in January 2020 and start mass production in June of the same year.
【Outline of Kubota Agricultural Machinery India】
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